Quiz – 1/ Date: 10-Feb-2020

Question: Kindly help the Purchase Manager take right cost decision.

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Quiz-1

Answer: Let’s calculate the Total Spend per year

Total Spend = Price/ Unit X Yearly Quantity   +   Fixed Cost Per Year   +   Tooling Cost/ Year

Scenario 1:   $ 75 X 50,000  +  $ 175,000  + 15000 X (50,000/ 250,000) = $ 3,928,000.00

Scenario 2: $ 85 X 50,000   + $ 0   +   17,700 X (50,000/250,000) = $ 4,253,540.00

Clearly, Total Spend in Scenario 2 is more than that of Scenario 2.

So, the Purchaser may choose Scenario 1: Source directly  from factory in India.

Quiz – 2 / 11-Feb-2020

Question : LinkedIn Link here

Answer:  There can be multiple answers.

My Answer:  Both Team Members need training.

Team Member 1: Need training about increasing production

Team Member 2: Need training about quality.

Quiz-3 / 12-2-2020

Question: LinkedIn link here

Answer: Lets Evaluate both scenarios:

Total Cost = Warehousing + Packaging Cost/ Unit X Quantity + Transportation Cost

Scenario, only ‘Existing Location’ : Total Cost = $ 3,000 + $ 5 X 800 + $ 2,200 = $ 9200 for 800 units → $ 11.5 / Unit

Scenario, ‘Existing + Additional Location’: Let’s add all the costs:

1. Warehousing Cost = $ 3,000 + $ 2,900 = $ 5,900
2. Packaging Cost = $ 5 X 800 + $ 5.5 X 600 = $ 7,300
3. Transportation Cost = $2,200 + $ 1,500 = $ 3,700

Total Cost = $ 5,900 + $ 7,300 + $ 3,700 = $ 169,000 for 1400 units → $ 12.07 / Unit

So Total Increase = $ 12.07 – $ 11.5 = $ 0.57/ Unit

Quiz – 4 / 24-02-2020

Question: LinkedIn Link Here

Answer: Material – A

Material – A exhibits behavior of Ductile Material, as it has long ‘Plastic Region’.

Material – B: This material exhibits behavior of a Brittle Material (Almost no Plastic region).

Quiz – 5 / 30-04-2020

Question: LinkedIn Link Here

Answer: LinkedIn Quiz_30.04.2020

Answer: Defect mode “PinHole” should be the first target.